Inattention and credit card repayment date

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2025
Volume: 230
Issue: C

Authors (4)

Jiang, Jiajun (not in RePEc) Lee, Yi-Tsung (Peking University) Liu, Yu-Jane (not in RePEc) Meng, Juanjuan (Peking University)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper presents an analysis of how inattention affects credit card repayment dates. Data from an Asian commercial bank reveal that 70 % of repayments are made prior to the due date and 21 % are late. We show that exogenous reductions in attention levels, stemming from weekday-weekend variations in billing dates and natural disasters, amplify late repayments and diminish early repayments. We find that early repayments are not random errors, and consumers learn to pay earlier or sign up for automatic payment after historical delays. We introduce a model based on inattention and heterogeneous awareness to explain these findings.

Technical Details

RePEc Handle
repec:eee:jeborg:v:230:y:2025:i:c:s0167268125000265
Journal Field
Theory
Author Count
4
Added to Database
2026-01-25